SALESFORCE INC (CRM) Stock Fundamental Analysis

NYSE:CRM • US79466L3024

194.79 USD
-4.68 (-2.35%)
At close: Feb 27, 2026
194.464 USD
-0.33 (-0.17%)
After Hours: 2/27/2026, 8:04:00 PM
Fundamental Rating

6

Overall CRM gets a fundamental rating of 6 out of 10. We evaluated CRM against 276 industry peers in the Software industry. While CRM has a great profitability rating, there are some minor concerns on its financial health. CRM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • CRM had positive earnings in the past year.
  • In the past year CRM had a positive cash flow from operations.
  • Each year in the past 5 years CRM has been profitable.
  • In the past 5 years CRM always reported a positive cash flow from operatings.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B

1.2 Ratios

  • CRM has a better Return On Assets (6.64%) than 77.17% of its industry peers.
  • The Return On Equity of CRM (12.61%) is better than 77.17% of its industry peers.
  • CRM's Return On Invested Capital of 9.59% is amongst the best of the industry. CRM outperforms 85.14% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CRM is below the industry average of 10.73%.
  • The 3 year average ROIC (8.16%) for CRM is below the current ROIC(9.59%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROIC 9.59%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8 10

1.3 Margins

  • With an excellent Profit Margin value of 17.96%, CRM belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
  • CRM's Profit Margin has been stable in the last couple of years.
  • CRM has a Operating Margin of 21.47%. This is amongst the best in the industry. CRM outperforms 89.13% of its industry peers.
  • In the last couple of years the Operating Margin of CRM has grown nicely.
  • With a decent Gross Margin value of 77.68%, CRM is doing good in the industry, outperforming 73.55% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
Industry RankSector Rank
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40 60

4

2. Health

2.1 Basic Checks

  • CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, CRM has less shares outstanding
  • The number of shares outstanding for CRM has been increased compared to 5 years ago.
  • Compared to 1 year ago, CRM has a worse debt to assets ratio.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B 80B 100B

2.2 Solvency

  • CRM has an Altman-Z score of 2.87. This is not the best score and indicates that CRM is in the grey zone with still only limited risk for bankruptcy at the moment.
  • CRM has a better Altman-Z score (2.87) than 64.13% of its industry peers.
  • The Debt to FCF ratio of CRM is 1.00, which is an excellent value as it means it would take CRM, only 1.00 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of CRM (1.00) is better than 74.64% of its industry peers.
  • CRM has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
  • CRM has a Debt to Equity ratio (0.18) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Altman-Z 2.87
ROIC/WACC0.89
WACC10.82%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B

2.3 Liquidity

  • CRM has a Current Ratio of 0.76. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • CRM has a worse Current ratio (0.76) than 87.68% of its industry peers.
  • A Quick Ratio of 0.76 indicates that CRM may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.76, CRM is doing worse than 87.32% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 22.61% over the past year.
  • Measured over the past years, CRM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.29% on average per year.
  • Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 9.58% in the last year.
  • Measured over the past years, CRM shows a quite strong growth in Revenue. The Revenue has been growing by 14.34% on average per year.
EPS 1Y (TTM)22.61%
EPS 3Y233.65%
EPS 5Y12.29%
EPS Q2Q%17.61%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%

3.2 Future

  • CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.58% yearly.
  • Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.53% on average per year.
EPS Next Y11.62%
EPS Next 2Y12.67%
EPS Next 3Y14.4%
EPS Next 5Y12.58%
Revenue Next Year11.01%
Revenue Next 2Y10.16%
Revenue Next 3Y9.78%
Revenue Next 5Y9.53%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.94, the valuation of CRM can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 62.68% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.07. CRM is around the same levels.
  • Based on the Price/Forward Earnings ratio of 14.69, the valuation of CRM can be described as correct.
  • Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than the industry average as 75.72% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, CRM is valued a bit cheaper.
Industry RankSector Rank
PE 24.94
Fwd PE 14.69
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRM is cheaper than 81.52% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CRM is valued cheaper than 84.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.67
EV/EBITDA 14.76
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of CRM may justify a higher PE ratio.
  • CRM's earnings are expected to grow with 14.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)2.03
EPS Next 2Y12.67%
EPS Next 3Y14.4%

3

5. Dividend

5.1 Amount

  • CRM has a yearly dividend return of 0.88%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.58, CRM pays a better dividend. On top of this CRM pays more dividend than 90.58% of the companies listed in the same industry.
  • With a Dividend Yield of 0.88, CRM pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.88%

5.2 History

  • CRM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 0.5 1 1.5

5.3 Sustainability

  • CRM pays out 21.28% of its income as dividend. This is a sustainable payout ratio.
DP21.28%
EPS Next 2Y12.67%
EPS Next 3Y14.4%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

SALESFORCE INC

NYSE:CRM (2/27/2026, 8:04:00 PM)

After market: 194.464 -0.33 (-0.17%)

194.79

-4.68 (-2.35%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26
Earnings (Next)05-26
Inst Owners84.48%
Inst Owner Change5.57%
Ins Owners2.57%
Ins Owner Change0.19%
Market Cap182.52B
Revenue(TTM)41.52B
Net Income(TTM)7.46B
Analysts79.66
Price Target311.82 (60.08%)
Short Float %1.94%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
Yearly Dividend1.67
Dividend Growth(5Y)N/A
DP21.28%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.61%
Revenue beat(12)1
Avg Revenue beat(12)-0.53%
Revenue beat(16)2
Avg Revenue beat(16)-0.28%
PT rev (1m)-5.44%
PT rev (3m)-7.21%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0.14%
EPS NY rev (3m)3.17%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.44%
Valuation
Industry RankSector Rank
PE 24.94
Fwd PE 14.69
P/S 4.4
P/FCF 12.67
P/OCF 12.17
P/B 3.09
P/tB N/A
EV/EBITDA 14.76
EPS(TTM)7.81
EY4.01%
EPS(NY)13.26
Fwd EY6.81%
FCF(TTM)15.37
FCFY7.89%
OCF(TTM)16
OCFY8.22%
SpS44.32
BVpS63.12
TBVpS-5.99
PEG (NY)2.15
PEG (5Y)2.03
Graham Number105.32
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROCE 11.86%
ROIC 9.59%
ROICexc 10.98%
ROICexgc 832.21%
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
FCFM 34.68%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
ROICexc(3y)9.79%
ROICexc(5y)6.53%
ROICexgc(3y)348.77%
ROICexgc(5y)217.21%
ROCE(3y)10.09%
ROCE(5y)6.73%
ROICexgc growth 3Y197.62%
ROICexgc growth 5Y168.58%
ROICexc growth 3Y64.12%
ROICexc growth 5Y61.34%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Debt/EBITDA 0.83
Cap/Depr 16.36%
Cap/Sales 1.43%
Interest Coverage 250
Cash Conversion 119.51%
Profit Quality 193.13%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 2.87
F-Score7
WACC10.82%
ROIC/WACC0.89
Cap/Depr(3y)17.96%
Cap/Depr(5y)19.34%
Cap/Sales(3y)1.76%
Cap/Sales(5y)2.11%
Profit Quality(3y)207.81%
Profit Quality(5y)804.88%
High Growth Momentum
Growth
EPS 1Y (TTM)22.61%
EPS 3Y233.65%
EPS 5Y12.29%
EPS Q2Q%17.61%
EPS Next Y11.62%
EPS Next 2Y12.67%
EPS Next 3Y14.4%
EPS Next 5Y12.58%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%
Revenue Next Year11.01%
Revenue Next 2Y10.16%
Revenue Next 3Y9.78%
Revenue Next 5Y9.53%
EBIT growth 1Y16.32%
EBIT growth 3Y68.68%
EBIT growth 5Y81.32%
EBIT Next Year37.9%
EBIT Next 3Y15.62%
EBIT Next 5Y4.52%
FCF growth 1Y15.83%
FCF growth 3Y31.64%
FCF growth 5Y28.62%
OCF growth 1Y14.54%
OCF growth 3Y28.24%
OCF growth 5Y25.58%

SALESFORCE INC / CRM FAQ

What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CRM.


What is the valuation status for CRM stock?

ChartMill assigns a valuation rating of 5 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.


Can you provide the profitability details for SALESFORCE INC?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the valuation of SALESFORCE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 24.94 and the Price/Book (PB) ratio is 3.09.


How financially healthy is SALESFORCE INC?

The financial health rating of SALESFORCE INC (CRM) is 4 / 10.